Harrisburg, Pennsylvania-based Mid Penn Bancorp has agreed to acquire in-state peer William Penn Bancorporation in an all-stock deal valued at around $127m.
The deal will see Bristol, Pennsylvania-based William Penn merging with and into Mid Penn.
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Under the agreed terms, William Penn shareholders will secure 0.4260 shares of Mid Penn common stock for each share they hold, implying roughly $13.58 per William Penn share.
William Penn, which has 12 branches across Pennsylvania and New Jersey, had nearly $812 million in total assets, $465 million in total loans and $630 million in total deposits as of 30 September 2024.
The combined entity will have total assets of about $6.3bn, $5.3bn in total deposits, and $4.9bn in total loans.
Mid Penn chair, president, and CEO Rory G Ritrievi said: “This merger will bolster Mid Penn’s presence in the attractive greater Philadelphia metro area market, aligning with our strategic plan of disciplined growth in the southeastern region of Pennsylvania and the southern region of New Jersey.”
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By GlobalDataThe deal has received unanimous approval from both companies’ boards of directors.
It is due to complete in the first half of 2025, contingent on standard closing conditions, including regulatory and shareholders’ clearances.
Mid Penn expects the transaction to be immediately accretive to its earnings per share and positively impact its profitability and operating ratios over the long term.
William Penn chairman, president and CEO Kenneth J Stephon said: “The merger enables us to accelerate our growth far more rapidly than we could as an independent company, while also creating excellent value for our shareholders, customers, and employees.”
Upon completion of the deal, Stephon will join the Mid Penn board and become the vice-chairman of its subsidiary Mid Penn Bank.
Private investment banking company Stephens was Mid Penn’s financial advisor for the deal, with Pillar + Aught being its legal counsel. Keefe, Bruyette & Woods provided a fairness opinion to Mid Penn’s board.
William Penn engaged Piper Sandler & Co. as its financial advisor, who also delivered a fairness opinion to its board, while Kilpatrick Townsend & Stockton offered legal advice.
